🔌 Goldman Sachs Bullish on Indian Power Stock, Predicts 26% Upside — Here’s What’s Behind the Bet
Global investment giant Goldman Sachs has turned bullish on India’s power sector, especially a leading utility stock it believes is poised for a 26% price rally. Amid rising power demand, government reforms, and clean energy expansion, the firm sees robust tailwinds ahead for this segment.
⚡ Which Power Stock Is in Focus?
Goldman Sachs has set its sights on NTPC Ltd, India’s largest energy conglomerate. It has assigned a “Buy” rating on NTPC, revising its price target upwards by 26% from current levels.
🗣️ “NTPC is well-positioned to capitalize on India’s structural electricity demand growth, capacity expansion plans, and decarbonization roadmap,” the Goldman report states.
📈 Why Goldman Sachs is Bullish on NTPC
1. Strong Capacity Expansion
NTPC is aggressively expanding its generation capacity with a pipeline of over 50 GW, including solar, wind, and nuclear.
2. Green Energy Push
NTPC Renewable Energy Ltd (NREL) is playing a key role in the green transition.
The company aims for 60 GW renewable capacity by 2032, aligning with India's clean energy targets.
3. Attractive Valuation
Despite steady performance and robust fundamentals, NTPC continues to trade at a discount to its global peers, making it an attractive value stock.
4. Consistent Dividends
With an average dividend yield of 4–5%, NTPC appeals to income-seeking investors.
5. Macro Support
India's electricity demand surged by 8–9% YoY, and reforms like revised tariff policies, PPA extensions, and DISCOM restructuring are creating a favourable ecosystem for utilities.
📊 Stock Performance Snapshot
| Metric | Value |
|---|---|
| Current Price | ₹X (as of June 2025) |
| Target Price (Goldman Sachs) | ₹X + 26% |
| Market Cap | Over ₹2.8 lakh crore |
| Dividend Yield | ~4.8% |
| 1-Year Return | ~35% |
🧐 FAQs
Q1. Why is NTPC in focus now?
Goldman Sachs sees NTPC benefiting from strong demand growth, energy transition initiatives, and healthy cash flows.
Q2. Is NTPC a good long-term investment?
Yes, it offers a combination of capital appreciation and stable dividends, backed by a strong government-linked balance sheet.
Q3. What risks should investors watch for?
Regulatory delays
Execution risks in renewable projects
Fuel supply constraints
Q4. What is NTPC’s renewable energy target?
NTPC aims to install 60 GW of green capacity by 2032, making it a key player in India’s decarbonisation journey.
Q5. Are other brokerages also bullish on NTPC?
Yes, firms like CLSA, Jefferies, and Motilal Oswal have also retained buy ratings, citing similar growth fundamentals.
🔍 Final Takeaway
As India’s power sector evolves with clean energy ambitions and infrastructure upgrades, NTPC is emerging as a strong investment story. With a mix of valuation comfort, renewables-led growth, and Goldman Sachs’ bullish bet, the stock is now firmly on the radar for both retail and institutional investors.
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Reported by Benny on June 19, 2025.
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